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PayPal updates its controversial user agreement following FCC warning

On Monday, digital payments company PayPal announced to make fixes to its user agreement following the controversy that sparked over its new robocalling policy.

The company faced criticism for adding new language into its user agreement, which indicated that they would be subjected to robocalls. The people feared that this would give PayPal the ability to cover users with autodialed marketing calls and texts.

A stern warning was sent by FCC to PayPal on June 11th, which detailed how the company could be violating the law. The FCC reminded PayPal that it along with any service providers or affiliates could be fined up to $16,000 per text message or call.

The controversial point of the earlier version of PayPal’s user agreement was that there was no way for users to opt out of receiving auto-dialed calls.

It meant that of if users failed to give permission to receive robocalls and autotexts, they would surrender their right to use PayPal entirely.

PayPal used its updated language and clarified three main points about the potential robocalls. According to section (1.10) of the user agreement, PayPal primarily uses auto-dialing and auto-texts to help detect, investigate and protect our customers from fraud, provide notices to their customers regarding their accounts or account activity and collect a debt owed to them.

This isn't PayPal’s first time to come under controversy for its shady practices. The company’s deceptive bill collecting practices let to the Consumer Financial Protection Bureau (CFPB) forced PayPal to pay $25 million in fines and consumer refunds.